earnings quality

Investors, it turns out, you really can't trust the numbers you see in those quarterly reports: Researchers at Emory and Duke universities say that at any given time, about 20% of publicly traded firms are misrepresenting their earnings.

As results roll in, earnings are beating expectations, but behind them lie lackluster revenue growth as the economy's slowdown takes hold. So despite upbeat analysts, investors should be vigilant about earnings quality and sustainability.